Ann Arbor, home of the University of Michigan, tops a list of best metros for recent college grads
Gen Z is bypassing traditional coastal hubs in favor of smaller, more affordable metros in the Midwest, according to a new analysis by RentCafe.
The July 2025 report ranks Ann Arbor, Michigan; Lincoln, Nebraska; and Des Moines, Iowa as the top three U.S. metros for recent college graduates.
The report analyzed the 100 largest U.S. metro areas based on factors such as Gen Z population share, employment growth, education levels, rental affordability, and overall livability. The results suggest that college towns and mid-sized cities — especially those with strong university ties — are becoming increasingly attractive to young professionals looking to start their post-grad lives.
ANN ARBOR LEADS THE NATION
Ann Arbor, home to the University of Michigan, ranked first overall. The city scored highest in the share of Gen Z residents with a bachelor’s degree or higher and placed in the top 10 for both livability and Gen Z population share.
“Ann Arbor offers recent grads a rare mix of intellectual energy, career opportunity, and quality of life,” the report notes. The metro has seen rising demand in industries like healthcare, education, and technology, supported by the presence of major research institutions and local startups.
LINCOLN & DES MOINES ROUND OUT THE TOP 3
Lincoln, Nebraska — anchored by the University of Nebraska — came in second overall. The city scored second in both livability and Gen Z population share. According to the report, Lincoln also saw one of the smallest increases in unemployment among Gen Z workers during recent economic fluctuations, signaling job market resilience.
Des Moines, Iowa ranked third. While it didn’t place in the top three in any single category, it performed consistently well across all metrics, particularly in affordability and employment growth. The Iowa capital has become a growing hub for insurance, finance, and tech roles, with a lower cost of living than many other metros offering similar opportunities.
MIDWEST DOMINATES THE TOP 10
Of the top 10 metros for Gen Z grads, six are located in the Midwest — a region that has gained traction for its affordability and work-life balance. Alongside the top three, cities like Madison, Wisconsin (#6) and Minneapolis-St. Paul (#8) also made the list.
The report suggests that many recent graduates are opting for markets where rent is manageable, job prospects are solid, and community amenities support a high quality of life. Southern metros like Raleigh, North Carolina (#4) and Washington, D.C. (#5) also performed well, while Seattle (#10) was the only West Coast city to crack the top tier.
UNIVERSITY PRESENCE A KEY FACTOR
A common denominator among the top-ranking metros is the presence of major public universities. These institutions contribute to local economies, provide employment pipelines, and support a highly educated young population — all features that appear to attract Gen Z talent.
“College towns have always been attractive, but now they’re emerging as serious contenders for young professionals seeking both opportunity and affordability,” the report concludes.
The RentCafe study, titled Work, Vibe, Thrive: Top Metros for Gen Z Graduates in 2025, is based on a composite score of multiple data sources, including the U.S. Census Bureau and Bureau of Labor Statistics. The full report is available at RentCafe.com.
© Copyright 2025 Poets & Quants. All rights reserved. This article may not be republished, rewritten or otherwise distributed without written permission. To reprint or license this article or any content from Poets & Quants, please submit your request HERE.
